Summary of Guide to Supply Chain Management

Summary: International Supply Chain Management




Written by: Colin Scott, Henriette Lundgren & Paul
Thompson




By Selma Charafeddin

,Table of Content
1. Introduction to supply chain management...................................................................3
1.1. What starts a supply chain........................................................................................ 3
1.2 A functional View of Supply Chain Management...................................................3
1.3 Supply chain players................................................................................................... 4
1.4 Supply Chain Dynamics.............................................................................................. 4
2. Guide to plan in supply chain management..................................................................6
2.1 Inventory and Supply Chains.................................................................................... 6
2.2 Demand and Supply Planning...................................................................................... 8
3 Guide to Source in Supply chain Management.......................................................................13
3.1 Introduction to Sourcing................................................................................................ 13
3.3 Sourcing Management Tools................................................................................... 16
4 Introduction to Make....................................................................................................... 18
5 Guide to Deliver in Supply Chain Management..........................................................23
6 Introduction to return..................................................................................................... 28
6.2 The return process.................................................................................................... 30
7 Guide to Strategy in Supply Chain Management.......................................................33
7.1 Introduction to corporate strategy........................................................................33
7.2 Achieving Strategic Alignment in Supply Chain Companies..............................34
7.3 Concepts to Support Supply Chain Strategy Development................................34
9 Introduction to Supply Chain Finance..........................................................................37
10 Introduction to Customer Service.............................................................................. 38
10.2 Managing Key Customers........................................................................................ 41
10.3 Delivering Against Customer Needs......................................................................42
11 What is outsourcing?................................................................................................... 44
11.3 Improved Service Though Better 3PL Management............................................48




By Selma Charafeddin

, 1.Introduction to supply chain management
1.1. What starts a supply chain




Supply Chain Management: managing the flow of information, materials and service from
raw material suppliers through factories and warehouses to the end customer.
Reverse flows:

 Goods, quality defect products or obsolete products
 Information, customer feedback
 Packaging material, outer cartons
 Transportation equipment, cages, pallets or containers

Reverse Funds: this is the money that flows back into the supply chain. The supplier’s
supplier wants to be paid for the delivery of tea leaves.
1. Product Supply 2. Customer Demand Which one starts the supply chain?
Example  operating from customer demand, you go to buy some tea but find an
empty supermarket with the question “ Please order your tea here”  They would then
explain that the order is automatically transmitted to the tea bag supplier in India in
order to grow, pick an process the required amount of tea leaves that are filled into tea
bags. Does this work? It probably doesn’t
Commodities (=not differentiated) such as tea, coffee, rice, bread, milk etc. are
more likely to be produced on a product supply basis. In this case product supply
starts the supply chain.
Customer demand driven products: customised products, tailor-made clothes,
customised tools.




By Selma Charafeddin

, 1.2 A functional View of Supply Chain Management

Supply Chain Operations reference model (SCOR)




 Plan process: balance demand and supply
 Source process: selecting suppliers
 Make process: setting up manufacturing
 Deliver Process: order management, logistics
 Return process: post-delivery customer support

Takes place in every stage of the supply chain!



1.3 Supply chain players




(Supply chain structures)
There are entire categories of companies that ere service providers to other players in the
supply chain. These perform services in areas as:

 Transportation
 Warehousing
 Finance
 Market research
 New product design
 Information, communication and technology




By Selma Charafeddin